EIH Ltd. Company History and Annual Growth Details

1949

- The Company was Incorporated on 26th May, at Calcutta. The Companyundertook Business of Hotel, restaurant, cafe, tavern, beer house,refreshment room, lodging and house keeping. The Company was promotedby Rai Bahadur M.S. Oberoi and Oberoi Hotels (India) Ltd., in May.

- The Company was built in collaboration with Intercontinental HotelsCorporation, a wholly owned subsidiary of Pan American World Airways,and was linked with Inter continental's vast and efficient sales network and was listed on its computerised reservation system known as'PANAMAC'. It is also linked with American Express Space Bank, a worldwide computerised hotel booking system.

1956

- The Company took on lease the Maharaja's Palace in Srinagar andconverted it into the Oberoi Palace Hotel. This hotel provided themain income for the Company till the end of 1964-65.

1966

- The Company entered into a collaboration agreement with SheratonInternational Inc., Boston, U.S.A., a wholly owned subsidiary ofInternational Telephones and Telegraphs. The collaboration agreementwas approved by Government in 1967-68.

1968

- By a scheme of merger approved by the Calcutta High Court, theAssociated Hotels of India Ltd., and Hotels Pvt. Ltd., were amalgamatedwith the Company. By virtue of the amalgamation, the Company acquiredOberoi Grand Hotel, Calcutta, Oberoi Mount Everst, Darjeeling, OberoiMaiden's, Delhi, Oberoi Cecil, Simla and Oberoi Palm Beach, Gopalpurand a suitable plot of land at Chennai.

- Mercury Travels (India) Pvt. Ltd., with an issued and paid-up capitalof Rs 35 lakhs is a wholly owned subsidiary of the Company.

1973

- Upon the expiry of the collaboration agreement with SheratonInternational Inc., U.S.A., on 5th March, 1979, the name of this hotelwas changed from Oberoi Sheraton Hotel to Oberoi Towers Hotel.

1974

- The Company entered into an agreement with the Zanzibar Government(East Africa) for providing technical and hotel operating services. Anagreement was concluded with the National Corporation of Zambia forrendering operation services for a luxury hotel in Ndola. The Companyalso finalised an agreement with Adayar Gate Hotels Ltd., Chennai forrendering technical assistance and operating services for their fivestar hotel under construction in Chennai.

1978

- Partly paid equity shares fully called up (Rs 2 per share during1977-78 and the balance Rs 6 per share during 1978-79).

- 15,00,000 No. of Equity shares issued at a premium of Rs 4 per shareon conversion of debentures on 30.10.1984. 49,53,131 bonus sharesissued in prop. 2:5 on 25.1.1985.

1985

- The Company issued 15% secured redeemable non-convertible debenturesfor a total value of Rs 6 crores. During April 1986, another issue ofnon-convertible debentures was made for a total value of Rs 15 crores.

1986

- A 10 year contract was given to the Company by the InternationalAirports Authority to operate all the snack bars and restaurants at thedomestic and International Terminals in Mumbai.

1987

- During Jan.-Feb., the Company offered 25,00,000 - 13.5% securedredeemable convertible debentures of Rs 100 each to its equityshareholders on rights basis in the proportion 2 debentures for every 7equity shares held (all were taken up). Additional 6,25,000 debentureswere allotted to shareholders to retain over subscription.

- 1,25,000 - 13.5% convertible debentures were offered to the residentIndian employees of the Company and other associate companies (only8,780 debentures were taken up). The unsubscribed portion was allowedto lapse.

- A portion of Rs 50 of each debenture was compulsorily converted into2 equity shares of Rs 10 each at a premium of Rs 15 per share inOctober. The non-convertible portion of Rs 50 of each debenture was tobe redeemed at par at the expiry of 7th year from the date of allotmentof the debentures.

1988

- The Company entered into a joint venture agreement with Accor ofFrance, which owns the Novotel Chain, for the construction anddevelopment of medium priced hotels in India. Necessary Governmentapprovals were obtained and the joint venture company was registered as'Indus Hotels Corporation Ltd.' (IHCL).

- The Company issued 15,00,000 - 14% non-convertible debentures of Rs100 each aggregating Rs 15 crores to meet a part of the expenditure forrenovation, refurnishing and capacity improvement. Additional 2,25,000debentures were allotted to retain over subscription. These debentureswere to be redeemed at a premium of 5% at the end of 7th year from thedate of allotment of debentures.

1990

- The Company offered 15,00,000 - 14% secured redeemablenon-convertible debentures of Rs 100 each on Rights basis in thefollowing proportion:

- (i) 20 debentures for 100 No. of equity shares held;

- (ii) 40 debentures for 1000 equity shares held;

- (iii) 50 debentures for 10,000 No. of equity shares held and

- (iv) for holders of more than 10,000 No. of equity shares, debentureswere to be allotted pro rata according to their respective shareholding(fraction ignored). All debentures were taken up and additional2,25,000 debentures were allotted to retain over-subscription. Thesedebentures are to be redeemed at a premium of Rs 5 per debenture on theexpiry of 7th year from the date of allotment.

- The Company offered 22,71,863 partly convertible debentures of Rs 150each on Rights basis in the proportion 1 deb.: 10 No. of equity sharesheld (all were taken up). Additional 3,39,790 debentures were allottedto retain over subscription. Another 3,40,780 partly convertibledebentures were issued to the promoters and Company's associates onpreferential allotment basis (all were taken up).

- Rs 50 of the face value of each debenture was to be compulsorilyconverted into 1 equity share of Rs 10 each at a premium of Rs 40 pershare on the expiry of 6 months from the date of allotment ofdebentures. Accordingly 16,11,833 shares were allotted on 19.12.93.Remaining Rs 100 of the face value of each debenture was to be redeemedin 3 annual instalments of Rs 33, Rs 33 and Rs 34 commencing from the6th year from the date of allotment of debentures.

- 11,35,932 - 15% non-Convertible debentures were issued on Rightsbasis in the proportion of 1 deb.: 20 No. of equity shares held (allwere taken up). Each debentures is accompanied by a detachabletradeable warrant, entitling the holder to apply for one equity shareof Rs 10 each at a premium of Rs 65 per share exerciseable during theperiod after the expiry of 36 months but before the expiry of 60 monthsfrom the date of allotment of non-Convertible debentures.

1994

- The Company formed a joint venture with Alfred Mc Alpine ConstructionMajor Projects Ltd., UK to provide construction and project managementexpertise for new projects. The Company entered into a joint venturearrangement to build an international golf course, a deluxe hotel and ahealth resort in Bangalore.

- As per the terms of issue, 28,67,383 No. of Equity Shares were issuedon 17th October, at a price of Rs 438 per equity share. As aconsequence to this issue, the equity capital increased by Rs 28,674million and the share premium account increased by Rs 1227.240 million.

- 28,67,428 No. of Equity shares issued as a consequence of GDR.

1995

- The Company proposed to set up a new joint venture company withEurest International, a subsidiary of Compass Group Plc. on a 50:50basis. The company proposed to transfer the existing airline cateringand airport operations to the new company.

- The Company proposed to issue bonus equity share in the ratio of 1:2to existing shareholders.

- Mashobra Resort Ltd, a joint venture with the government of HimachalPradesh, and Rajgarh Palace Hotels and Resorts Ltd, a joint venturewith the government of Madhya Pradesh, have become subsidiaries of thecompany.

- EIH Ltd owns and manages hotels under the Oberoi and Trident brand.The FAAA rating assigned by the Credit Rating Information Services ofIndia (Crisil) to the fixed deposit programme has been reaffirmed.

1999

- EIH Ltd has unveiled plans of opening four new hotels in the newmillennium.

2000

- The Company has established direct V-SAT connectivity with NationalSecurities Depository Limited and Central Depository Services (India)Limited.

- The Company has recommended introduction of an employee stock optionprogramme.

- Hotel major EIH Ltd has entered into an agreement with SukhvinderSingh Badal, son of The Punjab Chief Minister Prakash Singh Badal, forthe running of a luxury hotel to be set up at Gurgaon, near New Delhi.

- Oberoi Kerala Hotels and Resorts Limited, a Joint Venture withGovernment of Kerala has become a subsidiary of the company.

- EIH Ltd stated that ITC's investment companies have picked up6,05,704 shares, indicating that these companies have continued to buyand sell in EIH stock despite the uncomfortable revelation of suchbuying some months ago.

2001

- EIH, which owns and operates the Oberoi hotels, has reduced its staffstrength by 465 across its properties in Mumbai, Delhi and Calcutta.

- EIH, A member of the Oberoi group, on October 29 reported 79.13 percent decline in net profit at Rs 1.73 crore during the second quarterof current financial year.

2002

- P R S Oberoi reappointed as Managing Director on the Board of EIH.

-EIH Ltd has informed that the following changes in the management structure of the Company:

-EIH Ltd has informed following changes in management structure.Appointment of Additional Directors:Mr Nusli N Wadia, Mr Rajan Raheja, Mr Christopher Reeves.Mr P R S Oberoi who was the vice Chairman and Managing Director of the Company has been appointed as the Chairman in the Wholetime employment of the Company w e f June 27, 2002.Mr S S Mukherji who was the Deputy Managing Director of the Company has been appointed as the Managing Director of the Company w e f June 27, 2002.

-EIH Ltd has floated its voluntary retirement scheme to its employees at Oberoi Grand Hotel,Kolkota.

-EIH in alliance with Indian Railways mulls to launch luxury trains.

-Hilton International Co &amp; EIH Ltd announce a strategic alliance for co-branding hotels in India under the Trident Hilton brand

- Gujarat Gas signs an agreement with Garden Silk Mills.

2004

-EIH Ltd and Hilton International on April 2 launched a strategic alliance that saw seven Trident hotels being renamed as Trident Hilton. In addition, the Oberoi Towers in Mumbai will now be called the Hilton Towers.